2015 03 POST-DEMOGRAPHIC CONSUMERISM IN ASIA

2.
If Asian brands keep
aiming at their ‘target
customer’, they’re
going to miss.
Asian consumers are changing fast – and
old ideas about which customers to target
just don’t hold true anymore.
For decades, Asian brands – just like their counterparts
around the world – have obsessively divided customers
into a range of demographic segments. Think 18-35s,
single women, the middle classes, seniors, Millennials,
LGBT consumers, High Net Worth Individuals, and many
more.*
In 2015, everyone can sense that Asian consumerism
is changing fast. But fewer brands and businesses are
daring to rethink the traditional, demographics-based
models that guide their innovation and marketing.
The truth? Underlying much of the change we see
accelerating through the consumer arena daily is a
powerful trend that poses huge challenges – and
presents great opportunities – to any brand that wants
to connect with and delight Asian customers.
*More recently, a few use psychographics: segmenting consumers
based on lifestyles and behaviors.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 2

3.
KANTAR WORLDPANEL, MARCH 2015
In 2014, 39% of Chinese citizens in Tier II cities used
social media, against just 28% in Tier I cities.
TIER II CITIES TIER I CITIES
28%39%
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 3

4.
The Malaysian ancient art of Wayang
Kulit (shadow puppetry) is being
reinvented by young people using Star
Wars characters.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 4

5.
KANTAR WORLDPANEL, JANUARY 2014
Growth in sales of male grooming products in Asia
is outpacing that of beauty products for women.
62% of men disagree with the idea that a groomed
appearance is ‘just a woman thing’.
OF MEN DISAGREE
“Beauty products
are for women”
62%
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 5

6.
Ojek (motorcycle taxi) in Indonesia,
a traditionally working class mode of
transportation, can now be hailed by
smartphone.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 6

7.
Four snapshots of the counterintuitive Asian
consumer arena. One underlying reality: Asia
is entering a POST-DEMOGRAPHIC age!
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 7

8.
DEFINITION
POST-DEMOGRAPHIC CONSUMERISM |
People – of all ages and in all markets
– are constructing their own identities
more freely than ever. As a result,
consumption patterns are no longer
defined by ‘traditional’ demographic
segments such as age, gender, location,
income, family status and more.
We’ve already written about this epic trend from a global
perspective.
And in that Briefing, we outlined how the pace of change
is simply too fast, society too fluid, the global brain too
accessible, the market too efficient and innovation too
democratic for the old, demographic model of consumer
behavior to still hold true.
But while POST-DEMOGRAPHIC CONSUMERISM is a
truly global trend, it’s playing out in its own way across
Asia, driven by the coming together of uniquely Asian
cultures, traditions, mindsets and expectations.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 8

9.
WHY NOW?
Four powerful forces are driving this trend.
1. ACCESS: Asian consumers from Bangkok to Beijing
have access to the same information – and often the
same brands and products. Think Samsung, Coca-
Cola, Lifebuoy... This facilitates a new level of shared,
universal consumer experience.
2. PERMISSION: Asian societies are becoming
increasingly progressive and liberal, and urban
consumers are ever more exposed to unconventional
and alternative lifestyle choices.
3. ABILITY: Individual consumers are able to personalize
– and express themselves through – consumption to
a greater degree, especially with social media allowing
consumers to craft their own unique identities in the
digital realm.
4. DESIRE: The Asian STATUSPHERE is changing
fast, with the eroding connection between financial
resources and social status making customer
behavior less predictable via income level, and
changing the balance of power between generations.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 9

10.
So how should brands
respond to the rise of
POST-DEMOGRAPHIC
Asia?
We’ve identified three immediately
actionable, Asia-specific innovation
opportunities that MUST be on your radar!
1. NEW NORMAL: Old social norms are breaking down,
and non-traditional lifestyles are on the rise. In Asia,
that means everything from love-based marriages to
freedom of speech. Brands that celebrate new and
diverse lifestyles will be rewarded.
2. HERITAGE CHIC: In a POST-DEMOGRAPHIC Asia,
cultural traditions are being preserved but also
reinvented – and often by the people you’d least
expect: serve, facilitate and connect with them!
3. TRIBEFACTURING: Focus customer targeting around
niche groups, or ‘tribes’, with the same tastes/
interests/sensibilities. In Asia, these tribes often arise
out of necessity above everything else.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 10

11.
1. NEW NORMAL
Embrace and celebrate new diversity in
lifestyles and attitudes across Asia.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 11

13.
What exactly is NEW
NORMAL in Asia?
And what are brands supposed to do
about it?
We first identified NEW NORMAL as a standalone trend
for Asia back in 2014.
The five-second summary? Around the world, social
norms that kept people bound to ‘expected’ lifestyles
are fading and new, non-traditional ways of living and
thinking are on the rise.
So what does this look like in Asia? Of course, in many
Asian societies, tradition and socially conservative
values still hold strong. So NEW NORMAL can mean
acceptance of ideas and lifestyles that are already
plain OLD NORMAL elsewhere. Examples include
freedom of speech, gender roles, individuality (as
opposed to family attachments), and love-based
marriages.
Brands can win the love of new customers by celebrating,
and advocating, these NEW NORMAL lifestyles. Sure,
sometimes this will mean controversy. But remember,
consumers love brands who make a stand for a cause
they care about!
NEW NORMAL
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 13

14.
COMMUNITY MARKETING AND INSIGHTS, AUGUST 2014
The estimated purchasing power of China’s LGBT
community is USD 470 billion.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 14

15.
ENSUS AND STATISTICS DEPARTMENT, HONG KONG SPECIAL
ADMINISTRATIVE REGION, JANUARY 2015
In Hong Kong, more women are staying single.
From 1991 to 2011, the proportion of married women
declined from 65% to 55%.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 15

16.
NEW NORMAL: FEATURED INNOVATIONS
Levi’s
Campaign invites individuals to celebrate
Chinese New Year the non-traditional way.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 16

19.
NEW NORMAL: FEATURED INNOVATIONS
BFM Radio Station
Independent radio station promotes non-
biased reporting.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 19

20.
Controversies
For all that ways of thinking and living
are changing across Asia, the mindsets
of plenty of citizens are yet to catch
up. Celebrating, and advocating, NEW
NORMAL lifestyles may come with
controversies, as the following examples
demonstrate. But then again, consumers
love BRAND STANDS!
NEW NORMAL
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 20

21.
NEW NORMAL: FEATURED INNOVATIONS
Apple
Chinese New Year campaign upholds
traditional family values.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 21

24.
POOJA SOLANKI, INDIA
“We have caught glimpses of NEW NORMAL in India. It has
caused controversies each time and become a national topic
of discussion. It’s an observation that people are “morally
confused” between the old conventions and the new,
changing scenarios of the modern world. Society does not
know which side to support.”
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.spotters.trendwatching.com 24

26.
Tradition is becoming
the new chic.
And for groups of people you wouldn’t
expect!
Asian societies are being swept up in a wave of
globalization, causing the evolution of traditions and
cultures.
Some fear the erosion of their cultural heritage, and are
scrambling to hold on to it. As a result, traditional cultures
are being reinvented in novel, modern ways to keep up
with the times.
And in the POST-DEMOGRAPHIC world, the people most
concerned about tradition might not be the groups you
would expect.
The upshot? Brands that reinvent and reimagine culture
and tradition for new groups of people – with the
help of technology, or through sheer creativity and
imagination – will win a special place in the hearts of
their customers – and win entirely new fans, too!
HERITAGE CHIC
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 26

27.
ENERATION ASIA, Y&R, OCTOBER 2014
Across Asia, 70% of 18-35 year olds fear for the on-going
erosion of traditional values. Thai youths are particularly
concerned about losing traditional values. They score 119 on
the index, with 100 being the average.
OF ASIAN YOUTH
70%
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 27

28.
GENERATION ASIA, Y&R, OCTOBER 2014
Among 18-35 year olds in Malaysia, 82% believe in
preserving cultural connections through family values. The
figure is lower – at 57% – for 36-60 year olds.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 28

33.
3. TRIBEFACTURING
Think beyond traditional demographics by
catering to niche tribes of people with the
same tastes/interests/sensibilities.
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 33

34.
SELF-EXPRESSION vs.
BARE NECESSITIES
In Asia, self-expression can give rise to
new tribes. But so can necessity!
Niche tribes often arise out of consumers’ desire to
express – and be recognized for – their tastes and
identity. Today, everyone can be unique, and people are
getting more creative in expressing who they are, what
they like and what they believe in.
It’s time for brands to give more attention to these niche
tribes. Can you tailor your current offerings to fit the
tribe’s specific needs and preferences? Or can you help
them in their quest for highly unique self-expression?
Meanwhile, other uniquely Asian tribes arise out Asia-
specific needs: see more below!
TRIBEFACTURING
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 34

37.
Don’t forget
Asia’s TRIBES OF
NECESSITY
As the region continues to be riddled with
issues and limitations, people are finding
ways to make the best of the system.
People innovate because they have to, in
order to survive and thrive, and this has
given rise to some tribes unique to the
region. So how can your brand cater to
them, acknowledge them, or help make
their lives easier?
TRIBEFACTURING
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 37

41.
Traditional
demographics can be
TRIBES too!
The key is that these traditional
demographics often have non-
traditional lifestyles now! How have their
expectations and attitudes changed?
TRIBEFACTURING BONUS POINT
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 41

46.
Start innovating
around POST-
DEMOGRAPHICS
today!
Three angles of attack: NEW NORMAL,
HERITAGE CHIC and TRIBEFACTURING.
But start looking, and you’ll soon identify
more! The key: stay on the look out for
anything that is truly counterintuitive,
and when you find it ask: what underlying
changes are at work here? Good luck
navigating the new POST-DEMOGRAPHIC
world!
POST-DEMOGRAPHIC CONSUMERISM IN ASIAwww.trendwatching.com/trends/post-demographic-consumerism-asia 46

47.
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48.
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49.
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